SMB vs. VTES

Last updated Jun 24, 2026

SMB (VanEck Short Muni ETF) and VTES (Vanguard Short-Term Tax-Exempt Bond ETF) are both Municipal Bonds funds - SMB tracks the Bloomberg AMT-Free Short Continuous while VTES tracks the S&P 0-7 Year National AMT-Free Municipal Bond Index. Both are passively managed. Over the past 3 years, SMB returned 3.47%/yr vs 3.09%/yr for VTES. A 0.56 correlation means they provide meaningful diversification when combined. SMB charges 0.20%/yr vs 0.07%/yr for VTES.

Performance

SMB vs. VTES - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in VanEck Short Muni ETF (SMB) and Vanguard Short-Term Tax-Exempt Bond ETF (VTES). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

As of year-to-date, both investments have demonstrated similar returns, with SMB at 0.76% and VTES at 0.76%.

SMB

• 1D: -0.03%
• 1M: 0.79%
• YTD: 0.76%
• 6M: 0.76%
• 1Y: 3.53%
• 3Y*: 3.47%
• 5Y*: 1.24%
• 10Y*: 1.48%

VTES

• 1D: 0.01%
• 1M: 0.58%
• YTD: 0.76%
• 6M: 0.87%
• 1Y: 3.26%
• 3Y*: 3.09%
• 5Y*: —
• 10Y*: —

*Multi-year figures are annualized to reflect compound growth (CAGR)

SMB vs. VTES - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023
SMB VanEck Short Muni ETF	0.76%	4.61%	2.41%	3.69%
VTES Vanguard Short-Term Tax-Exempt Bond ETF	0.76%	4.19%	1.85%	3.32%

Correlation

The correlation between SMB and VTES is 0.47, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.47
Correlation (3Y) Calculated over the trailing 3-year period	0.54
Correlation (All Time) Calculated using the full available price history since Mar 9, 2023	0.56

The correlation between SMB and VTES has been stable across timeframes, ranging from 0.47 to 0.56 - a consistent structural relationship.

Return for Risk

SMB vs. VTES — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

SMB

SMB Risk / Return Rank: 69
SMB Sharpe Ratio Rank: 73
SMB Sortino Ratio Rank: 77
SMB Omega Ratio Rank: 79
SMB Calmar Ratio Rank: 66
SMB Martin Ratio Rank: 52

VTES

VTES Risk / Return Rank: 71
VTES Sharpe Ratio Rank: 85
VTES Sortino Ratio Rank: 88
VTES Omega Ratio Rank: 93
VTES Calmar Ratio Rank: 46
VTES Martin Ratio Rank: 41

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

SMB vs. VTES - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for VanEck Short Muni ETF (SMB) and Vanguard Short-Term Tax-Exempt Bond ETF (VTES). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.

	SMB	VTES	Difference
Sharpe ratio: Return per unit of total volatility	2.18	2.64	-0.45
Sortino ratio: Return per unit of downside risk	3.20	3.80	-0.60
Omega ratio: Gain probability vs. loss probability	1.43	1.61	-0.17
Calmar ratio: Return relative to maximum drawdown	3.03	2.23	+0.81
Martin ratio: Return relative to average drawdown	8.52	6.38	+2.14

SMB vs. VTES - Sharpe Ratio Comparison

The current SMB Sharpe Ratio is 2.18, which is comparable to the VTES Sharpe Ratio of 2.64. The chart below compares the historical Sharpe Ratios of SMB and VTES, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

SMB vs. VTES - Drawdown Comparison

The maximum SMB drawdown since its inception was -12.64%, which is greater than VTES's maximum drawdown of -2.42%. Use the drawdown chart below to compare losses from any high point for SMB and VTES.

Drawdown Indicators

	SMB	VTES	Difference
Max Drawdown Largest peak-to-trough decline	-12.64%	-2.42%	-10.22%
Max Drawdown (1Y) Largest decline over 1 year	-1.17%	-1.47%	+0.30%
Max Drawdown (3Y) Largest decline over 3 years	-1.80%	-1.80%	0.00%
Max Drawdown (5Y) Largest decline over 5 years	-7.48%	—	—
Max Drawdown (10Y) Largest decline over 10 years	-12.64%	—	—
Current Drawdown Current decline from peak	-0.05%	-0.52%	+0.47%
Average Drawdown Average peak-to-trough decline	-1.14%	-0.50%	-0.64%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.42%	0.51%	-0.09%

Volatility

SMB vs. VTES - Volatility Comparison

VanEck Short Muni ETF (SMB) has a higher volatility of 0.29% compared to Vanguard Short-Term Tax-Exempt Bond ETF (VTES) at 0.27%. This indicates that SMB's price experiences larger fluctuations and is considered to be riskier than VTES based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	SMB	VTES	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.29%	0.27%	+0.02%
Volatility (6M) Calculated over the trailing 6-month period	1.16%	0.98%	+0.18%
Volatility (1Y) Calculated over the trailing 1-year period	1.63%	1.24%	+0.39%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	2.48%	1.71%	+0.77%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	4.26%	1.71%	+2.55%

SMB vs. VTES - Expense Ratio Comparison

SMB has a 0.20% expense ratio, which is higher than VTES's 0.07% expense ratio. However, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.

Dividends

SMB vs. VTES - Dividend Comparison

SMB's dividend yield for the trailing twelve months is around 2.69%, less than VTES's 2.75% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
SMB VanEck Short Muni ETF	2.69%	2.63%	2.38%	1.83%	1.32%	1.24%	1.50%	1.58%	1.49%	1.23%	1.12%	1.13%
VTES Vanguard Short-Term Tax-Exempt Bond ETF	2.75%	2.77%	2.99%	2.03%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both SMB and VTES in my portfolio?

SMB and VTES have a correlation of 0.47, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, SMB or VTES?

SMB has higher volatility (0.29%) compared to VTES (0.27%). In terms of maximum drawdown, SMB dropped -12.64% vs VTES's -2.42%.

Which ETF is better, SMB or VTES?

On 3-year performance, SMB leads with 3.47% vs 3.09% for VTES. On fees, VTES is cheaper at 0.07% per year. Their volatility is very similar. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, SMB or VTES?

Over the 3-year period, SMB has performed better with a 3.47% return vs 3.09%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, SMB or VTES?

VTES is cheaper with a 0.07% expense ratio, compared with 0.20% for SMB.

Which ETF pays a higher dividend yield, SMB or VTES?

VTES has the higher dividend yield at 2.75%, compared with 2.69% for SMB.

What is the main difference between SMB and VTES?

SMB tracks Bloomberg AMT-Free Short Continuous, while VTES tracks S&P 0-7 Year National AMT-Free Municipal Bond Index. They also come from different issuers: VanEck and Vanguard. Their fees differ too: 0.20% for SMB and 0.07% for VTES.

Which has better risk-adjusted returns?

VTES currently has the higher Sharpe Ratio (2.64 vs 2.18), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.